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Dollar Falls to 14-Year Low Against Pound
Wall Street Journal ^ | 30 November 2006 | AP Staff

Posted on 11/30/2006 5:39:26 AM PST by shrinkermd

The sagging dollar fell Thursday to its lowest level against the pound in 14 years amid a rise in U.K. house prices and a seasonal rally in the British currency.

The dollar also declined against the euro and yen.

In morning trading in London, the pound hit $1.9562, up from $1.9462 late Wednesday in New York -- its strongest showing against the dollar since September 1992, before Britain was forced out of the European Exchange Rate Mechanism. The pound last reached the $2 level on Sept. 8, 1992

(Excerpt) Read more at online.wsj.com ...


TOPICS: Business/Economy
KEYWORDS: chickenlittle; dealwithit; decline; dollar; doomsday; goldbugs; pound
"...In terms of sentiment, it feels like expectations for a euro/dollar rise to $1.3500 are strong," said Shuichi Kanehira, senior trader at Mizuho Corporate Bank. Because few European officials other than French policy makers have signaled discomfort with the single currency's rises, "I don't get an impression that players feel wary of trying the upper areas of the $1.30s," he said.

"...German Deputy Economics Minister Bernd Pfaffenbach said overnight that the recent gains of the euro reflect the strength of the euro-zone's economy and that it would be wrong to complain about

As this is posted gold up $4.80 per oz.

1 posted on 11/30/2006 5:39:29 AM PST by shrinkermd
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To: shrinkermd

Huge amounts of dollar reserves are being positioned for Euros and gold.


2 posted on 11/30/2006 5:43:04 AM PST by angkor
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To: angkor
Huge amounts of dollar reserves are being positioned for Euros and gold.

Baloney!

3 posted on 11/30/2006 5:50:12 AM PST by Mind-numbed Robot (Not all that needs to be done, needs to be done by the government.)
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To: shrinkermd

Looks like I'll be popping over to NYC to do a bit Christmas shopping next week. $2 to the quid makes the US a very cheap place for us Brits to visit.


4 posted on 11/30/2006 5:53:40 AM PST by AngloSaxonChristian
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To: AngloSaxonChristian

Invite some friends. Bring lots of pounds!


5 posted on 11/30/2006 5:57:13 AM PST by jim35 ("...when the lion and the lamb lie down together, ...we'd better damn sure be the lion")
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To: shrinkermd

In this case it would be just as easy to invest in the actual currencies that are increasing, rather than gold, but whatever.


6 posted on 11/30/2006 6:00:08 AM PST by CharlesWayneCT
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To: AngloSaxonChristian

Good idea. Enjoy!


7 posted on 11/30/2006 6:02:38 AM PST by WashingtonSource
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To: Mind-numbed Robot

You have got that right. Pure baliney.

What this will do is lower the euro's buying power for everything chinese, and that won't help them a bit. To the contrary.


8 posted on 11/30/2006 6:04:29 AM PST by bill1952 ("All that we do is done with an eye towards something else.")
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To: bill1952

It's peg to the dollar so how could that be.


9 posted on 11/30/2006 6:26:25 AM PST by Orange1998
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To: Orange1998
European countries -- which are protectionist by nature -- would never allow China to maintain the kind of trade surplus with them that it maintains with the U.S.

China is set up to be a trading partner with the U.S. -- and nothing else. De-linking the yuan from the U.S. dollar and linking it instead to another currency will make them less competitive with their single biggest trading partner and will ultimately drive them to ruin.

10 posted on 11/30/2006 6:48:33 AM PST by Alberta's Child (Can money pay for all the days I lived awake but half asleep?)
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To: AngloSaxonChristian

By all means, and enjoy yourself. I'll be hopping over to London for my shopping, only because I have so many miles on my British Air Card! I stay at the Selfridge across from Marks and Spencer. Wonderful place.


11 posted on 11/30/2006 7:00:28 AM PST by MSF BU
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To: Alberta's Child

Years ago no one would have ever thought a communist country economic future would be tied to US. I am concerned when a communist country has the best of both worlds, strong economic engine and a ruler with steel fist. We are feeding a monster.


12 posted on 11/30/2006 7:14:03 AM PST by Orange1998
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To: Orange1998

The U.S. economy is such an unsustainable, dysfunctional mess that it needs an economically inferior trading partner to keep it solvent. And it needs a country like China as a major trading partner because no free nation would ever do the kind of things China has done to perpetuate this system (i.e., linking their currency to the U.S. dollar, thereby ensuring that Chinese workers would basically serve as our slaves -- since they will always be at a competitive advantage from a labor standpoint but can never see their living standards rise as their currency strengthens).


13 posted on 11/30/2006 7:20:29 AM PST by Alberta's Child (Can money pay for all the days I lived awake but half asleep?)
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To: Orange1998

What? You just answered your own question!

Its pegged to the dollar= more expensive for the euro against China & the US.


14 posted on 11/30/2006 8:58:56 AM PST by bill1952 ("All that we do is done with an eye towards something else.")
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To: bill1952
I misunderstood your comment. Ooops
15 posted on 11/30/2006 9:16:24 AM PST by Orange1998
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To: Orange1998

thats okay. - that happens to me more than I'd like to admit. 8^)


16 posted on 11/30/2006 10:59:47 AM PST by bill1952 ("All that we do is done with an eye towards something else.")
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To: Alberta's Child
The U.S. economy is such an unsustainable, dysfunctional mess that it needs ...

LOL! - that it needs more opinions like yours to laugh at.

17 posted on 11/30/2006 11:03:40 AM PST by bill1952 ("All that we do is done with an eye towards something else.")
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To: Orange1998

Other than the name of the ruling party, what is communist about China?

In many ways they are the most capitalist nation in the world.


18 posted on 11/30/2006 11:37:17 AM PST by chipengineer
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To: chipengineer
You GOT to be kidding. Tell that to the peaceful protest students who were massacre in Tiananmen Square. What cool-aide have you been drinking.
19 posted on 11/30/2006 12:01:09 PM PST by Orange1998
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To: Orange1998

I did not say China's government is civil rights respecting or a democracy - it's not even close.

But that says nothing about whether their economic system is communist or capitalist, if you understand the difference.


20 posted on 11/30/2006 3:18:31 PM PST by chipengineer
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To: chipengineer

China economic system in it's truest sense a communist one. Production of all goods and services are determined by the Communist Party. The prices are not controlled by consumer demand but instead are controlled by the Chinese Communist Party. I understand the economic differences.


21 posted on 11/30/2006 4:59:07 PM PST by Orange1998
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To: Orange1998

>The prices are not controlled by consumer demand but instead are controlled by the Chinese Communist Party.

I do not think you have kept up with what has happened in China the last 20 years. The reason China has tremendous growth over this period is the end of most party control of the economy.

China's rulers may be evil political dictators, but they are not stupid enough to ignore what capitalism has done for Hong Kong, Taiwan, Singapore, and much of the rest of east Asia.


22 posted on 11/30/2006 5:39:00 PM PST by chipengineer
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To: chipengineer

Apples and oranges. your terms are mixed up.

Communism is a political structure. Capitalism is not.
It is possible to have the two co exist, and China is doing that, albeit with difficulty.


23 posted on 12/01/2006 5:50:18 AM PST by bill1952 ("All that we do is done with an eye towards something else.")
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To: bill1952

>Communism is a political structure.

Not according to the primary dictionary definition:

http://www.m-w.com/dictionary/communism

1 a : a theory advocating elimination of private property b : a system in which goods are owned in common and are available to all as needed


24 posted on 12/01/2006 9:29:08 AM PST by chipengineer
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